On today’s episode of Blue Gems we’re welcoming Billy Withers, a short term rental tax strategist. He’s been in the field for 10 years total, focusing on short term rental investors for the past 5 years. When you’re just starting out as a STR investor it’s important to have a tax strategist to make sure you reap the tax benefits and avoid a huge tax bill at the end of the year. Billy talks about things STR investors need to watch out for when they are thinking about their taxes. He is getting into the laws, details, and loopholes that many normal tax strategists won’t be able to tell you. 

To protect yourself from a dreaded tax bill, it’s important to build yourself a tax team that can give you good financial advice. Billy shares the best way to build out your tax dream team, from what to look for to who you need behind your back. A tax strategist may cost a couple grand up front, but they will save you tons of money in the long run. If you want to know what you need to do as a client of a tax strategist, Billy also shares how the client side of things work. Billy closes out our episode with two blue gems you don’t want to miss that will help an STR investor who may be feeling inexperienced in the realm of tax strategy.

Follow Billy online:

► Website - https://summitats.com/

► Email - [email protected]

► LinkedIn - https://www.linkedin.com/in/billywitherstax/

Let's connect!

► Blue Gems Instagram: https://www.instagram.com/bluegemsgroup/

► Aidan's Instagram: https://www.instagram.com/aidangroll/

► JB's Instagram: https://www.instagram.com/jbinvested/

► Blue Gems Management: https://bluegemsmgmt.co

► STR Meetup: https://bluegemsgroup.com

Timestamps:

[00:00] Intro

[01:08] Billy and his background

[03:17] Why should you have a tax strategist?

[04:52] Why did Billy focus on STRs?

[07:43] Differences between a long term rental and short term rentals with taxes

[08:50] What qualifies as passive?

[10:46] The short and long term benefits on depreciation 

[12:42] Changes in tax laws in 2023-24

[13:50] What is a cost segregation study?

[15:31] The steps of building out a tax team 

[19:25] What can you expect to pay for tax consulting?

[20:44] Blue Gems Management

[21:12] What a tax strategist needs from their clients

[23:48] Does Billy represent all the states?

[25:03] What is the number one mistake real estate investors make on taxes?

[26:27] What is the trend of people who are the most successful?

[27:13] The last blue gem

[28:30] Where to find Billy 

*None of this is meant to be specific investment advice, it's for entertainment purposes only.